|12 Months Ended|
Dec. 31, 2016
|Debt Disclosure [Abstract]|
5. Long-term debt
JP Morgan Chase debt
In November 2014, the Company secured a primary banking relationship that provides access to a $15,000 working capital revolving line of credit, and treasury and cash management services through commercial banking with JP Morgan Chase Bank. This agreement is a three-year working capital revolving line of credit which replaced the previous loan facility the Company maintained with Comerica. The interest rate on outstanding debt balances will be London Interbank Offer Rate (LIBOR) plus 1.25%.
The Company is required to maintain at all times a tangible net worth of $90,000 and EBITDA (i) of $10,000 for any period of four consecutive quarters commencing with the four-quarter test period ended September 30, 2014 through the four-quarter test period ended March 31, 2016 and (ii) of $12,500 for any four-quarter test period commencing with the four-quarter test period ended June 30, 2016 and continuing thereafter. As of December 31, 2016, the Company had $43,583 in EBITDA and was required to have $12,500. In addition, the Company had a tangible net worth of $181,847 and was required to have $90,000. The revolving line of credit also restricts the Company’s ability to pay dividends. The Company may pay dividends, share repurchases or acquisitions in the aggregate not to exceed $1,000 in any fiscal year provided that no event of default has occurred. As of December 31, 2016, the Company had $15,000 in available debt capacity under the revolving facility.
Patent purchase obligation
The contractual obligations schedule below relates to the acquisition of patents which are reflected in intangible assets and were acquired in 2011.
The entire disclosure for long-term debt.
Reference 1: http://www.xbrl.org/2003/role/presentationRef